Scholarlink

<p>In this study, we examine the capital management of Australian banks before the introduction of the capital conservation and countercyclical capital buffers of Basel III. We find evidence of a negative relationship between the internally targeted capital buffers of banks and the current state of the economic cycle. This finding supports the view that the capital conservation and countercyclical capital buffers under Basel III are necessary reforms to address the tendency of banks to manage their capital buffers in a pro-cyclical fashion. However, we also find evidence of forward-looking capital management: Banks set higher target capital buffers when the economic outlook improves and the loan demand increases. We find unambiguous evidence that banks adjust their actual capital buffers to align them with their pre-defined target capital buffers.</p>

错误：搜索内容不能为空，请输入英文关键词
错误：关键词超出字数限制，请精简
高级检索

Regulatory Capital and Internal Capital Targets: An Examination of the Australian Banking Industry☆

  • 期刊论文

  • 出版模式：

    开放获取

  • 发表日期：

    2025年3月26日

查看全文
  • James R. Cummings,
  • Kassim J. Durrani

摘要

In this study, we examine the capital management of Australian banks before the introduction of the capital conservation and countercyclical capital buffers of Basel III. We find evidence of a negative relationship between the internally targeted capital buffers of banks and the current state of the economic cycle. This finding supports the view that the capital conservation and countercyclical capital buffers under Basel III are necessary reforms to address the tendency of banks to manage their capital buffers in a pro-cyclical fashion. However, we also find evidence of forward-looking capital management: Banks set higher target capital buffers when the economic outlook improves and the loan demand increases. We find unambiguous evidence that banks adjust their actual capital buffers to align them with their pre-defined target capital buffers.